HDFC BankMEX:HDBN 66 Return-on-Tangible-Equity is 15.05% as of Mar. 2025, which is 10% below its 10-year median of 16.64. GuruFocus rates MEX:HDBN with a GF Score™ of 66/100 and a GF Value™ of MXN501.84 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,522 Banks companies, HDFC Bank ranks better than 77.86% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. HDFC Bank's annualized net income for the quarter that ended in Mar. 2025 was MXN158,399 Mil. HDFC Bank's average shareholder tangible equity for the quarter that ended in Mar. 2025 was MXN1,052,458 Mil. Therefore, HDFC Bank's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 15.05%.
The historical rank and industry rank for HDFC Bank's Return-on-Tangible-Equity or its related term are showing as below:
MEX:HDBN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 15.42 Med: 16.64 Max: 18.81
Current: 15.72
During the past 13 years, HDFC Bank's highest Return-on-Tangible-Equity was 18.81%. The lowest was 15.42%. And the median was 16.64%.
MEX:HDBN's Return-on-Tangible-Equity is ranked better than 77.86% of 1522
companies
in the Banks industry
Industry Median: 11.24
vs MEX:HDBN: 15.72
HDFC Bank (MEX:HDBN) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
HDFC Bank Return-on-Tangible-Equity Related Terms
HDFC Bank Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for HDFC Bank's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:HDBN vs PNC: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, HDFC Bank's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
HDFC Bank Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, HDFC Bank's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where HDFC Bank's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Mar. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 15.05% mean?
HDFC Bank (MEX:HDBN) has a Return-on-Tangible-Equity of 15.05% as of Mar. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on HDFC Bank and its competitors. This is 10% below median its historical median of 16.64. Over the past decade, HDFC Bank's Return-on-Tangible-Equity has ranged from 15.42 to 18.81. According to the industry distribution chart, HDFC Bank ranks #337 out of 1522 companies in the Banks industry, placing it in the top 22.1%.
Is HDFC Bank's Return-on-Tangible-Equity too high?
HDFC Bank's current Return-on-Tangible-Equity of 15.05% is 10% below median its 10-year median of 16.64. Over the past 10 years, this metric has ranged from a low of 15.42 to a high of 18.81. The Banks industry median Return-on-Tangible-Equity is 11.24. HDFC Bank's value of 15.05% is 33.9% above this industry median. Based on the distribution chart, HDFC Bank ranks #337 out of 1522 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, HDFC Bank has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HDFC Bank's Return-on-Tangible-Equity compare to PNC?
According to the Banks industry distribution chart, HDFC Bank ranks #337 out of 1522 companies for Return-on-Tangible-Equity. This places HDFC Bank in the top 22% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.24. HDFC Bank's value of 15.05% is 33.9% above this benchmark. Historically, HDFC Bank's own Return-on-Tangible-Equity has ranged from 15.42 to 18.81 over the past decade. While the company's 10-year median is 16.64 vs. the industry median of 11.24, HDFC Bank has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.24, based on 1,522 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HDFC Bank's current Return-on-Tangible-Equity of 15.05% is 33.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on HDFC Bank and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HDFC Bank's current Return-on-Tangible-Equity is 15.05%, which is 10% below median its own 10-year median of 16.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HDFC Bank stock overvalued right now?
Based on GuruFocus' analysis, HDFC Bank (MEX:HDBN) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN501.84, compared to a current price of MXN410.00 — trading 18.3% below its estimated fair value. The current Return-on-Tangible-Equity is 15.05%, which is 10% below median its 10-year median of 16.64 and 33.9% above the Banks industry median of 11.24. HDFC Bank's overall GF Score™ is 66/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For HDFC Bank (MEX:HDBN), the current Return-on-Tangible-Equity is 15.05% as of Mar. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is HDFC Bank (MEX:HDBN) Overvalued in 2026?
Based on GuruFocus' analysis, HDFC Bank stock appears to be undervalued.
The current stock price of MXN410.00 is trading 18.3% below its estimated GF Value™ of MXN501.84.
GuruFocus considers HDFC Bank to be Modestly Undervalued.
Key valuation signals for MEX:HDBN:
Return-on-Tangible-Equity: 15.05% (10% below median its 10-year median of 16.64)
GF Value™: MXN501.84 vs. price of MXN410.00 (18.3% below fair value)
Industry Position: 33.9% above the Banks median (#337 of 1522)
No single metric tells the full story. See the MEX:HDBN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HDFC Bank Ltd is an Indian bank. It operates in the following segments: Treasury, Retail banking, Wholesale banking, and Other banking business. The maximum revenue for the company is generated from its Retail banking segment, which serves retail customers through its branch network and other channels. This segment raises customer deposits and provides loans and other services to customers using different product groups. Its other operations include providing wholesale banking services to corporates, government entities, and other enterprises, generating income from its treasury operations, and performing para-banking activities such as offering credit cards, debit cards, etc. Geographically, the company generates a majority of its revenue from its operations in India.
66GF Score
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